There are many decisions to take and changes to make when running a business and financial difficulties quite often occur as a result of these.
Many businesses face financial difficulties
due to:
changes in the market place;
increased competition;
dependence on customers who influence the prices;
dependence on suppliers who influence the prices;
loss of key personnel; and
economic factors, such as changes in interest
rates or taxes
When
a director or officer of a company realises it
is in financial difficulty they should act immediately.
There may be options available to the company at the
early stages of its financial crisis.
If a company is insolvent i.e. unable to pay its debts as and when they fall due and/or has more liabilities than assets, the director should seek advice from a licensed Insolvency Practitioner because if they continue to trade the company the director could become personally liable for its losses and could also be disqualified from acting as a director of any other company.
Wilson Field understand that there is an immense degree of pressure on directors when deciding what is best for their company. This is particularly true when making the decision to continue or cease trading.
Wilson Field can help you make the decision with confidence.
It is recommended that directors ensure they have up to date financial information, hold regular meetings, keep minutes of all decisions taken if they continue to trade and seek expert advice if in doubt.
Sometimes
it is possible for a company to continue trading with
the help of an insolvency procedure which will protect
the company from its creditors
and allow it to breathe and come back to life.
Such procedures
are:
Company Voluntary Arrangement (CVA), where an arrangement
is made with the companys current creditors; or
Administration, where an Insolvency Practitioner would be appointed to run the company with the aim of rescuing it.
Unfortunately there are times
when the company has ‘had its day’ and
it is time to shut up shop. Although this may
seem extreme, acting sooner rather than later could
prevent:
trade creditors suffering greater losses than
necessary;
the bank situation worsening, and possibly resulting in the directors paying monies owed under their personal guarantees; and
employees not being paid for long periods of time;
In this case the most appropriate action to take would probably be Liquidation where licensed Insolvency Practitioners are appointed to realise the companys' assets and discharge its liabilities.
Wilson Field understand that the directors will be under substantial pressure
in such a situation we aim to
remove the black clouds by providing:
professional advice which is easy to understand
approachable staff; and
no up front fee
Our team of four licensed Insolvency Practitioners have over 50 years of experience and our well trained professional advisors have over 100 years experience in all areas of insolvency.
Company Debt
We aim to deliver a professional service, which would be provided by our Corporate Sector team of insolvency specialists.
The following solutions are available to Companies with debt related
problems:
Company Voluntary Arrangement
Liquidation
Administration
To talk to one of our specialist team members please call 0800 458 3320 and ask
to speak to a member of our Advice Team who will be happy to discuss YOUR personal
circumstances and help YOU decide which way is the best for YOUR Company.
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We
understand that you may require guidance and encouragement
to help you through these difficult times.
Useful Links:
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